You have paid your suppliers in China or any other country in overseas, but they claim they haven’t received the payment. Meanwhile, your bank confirms that the transaction was processed. Now, you’re left wondering: How do I prove to the suppliers that the payment has already been made?
This is where the MT103 becomes essential. The MT103 is basically your proof of payment that you can use to confirm a transfer, track delays, or resolve a dispute. It shows all transfer details, including when and where the funds were sent. It’s usually used with SWIFT international payments.
In this article, we will explain what the MT103 is, how it works, what information it provides, how to read its fields, and where to find it.
What Is an MT103?
An MT103 (Message Type 103) is a document that contains a message banks use to complete a SWIFT international transfer between one account to another. It is also referred to as an “MT103 Single Customer Credit Transfer.”
An MT103 can be used as proof of payment and is recognised by institutions worldwide. It includes a detailed record of all the standardised information banks used to make transfers and can provide the recipient with transaction details, including any applicable fees and currency exchange rates.
What Can You Use an MT103 For?
You can use the MT103 document
- To keep clear payment records: It gives you a detailed and organised record of your international transfer, so you know what was sent and when. This reduces the risk of disputes. A common issue is when the amount received differs from the amount sent, often due to fees deducted by intermediary banks during the transaction. The MT103 can help you track this discrepancy.
- As proof of payment: The MT103 acts like an official receipt, confirming that your funds were sent. This can help if you need to resolve any disputes or keep track for auditing purposes.
- To track your payment: MT103 comes with a unique reference number, which banks can use to track and verify a payment’s progress if delays or discrepancies occur.
If you are expecting a payment from a client or a refund from a supplier, you can request an MT103. This document confirms that the transfer has been initiated.
Note: An MT103 means that the payment has been initiated and sent, but it does not necessarily mean it has arrived. To confirm where the payment is, you use a unique reference number found on the MT103 and enter it in the bank tracking tools. To get the tracking tool or to have the software and be able to perform PACS008 (MT103) MX SWIFT ISO20022, kindly contact us.
That’s all on PACS.008 [MT103]: ISO 20022 SWIFT MX message Guide, kindly share if you find this article helpful.